The short answer: what is the minimum?
For some eligible first home buyers, the starting point may be a 5% deposit. On a $600,000 home, that is $30,000. However, the amount you should have available is usually higher because the deposit does not automatically pay your stamp duty, conveyancer, inspections, registration charges, lender costs, insurance, moving costs or emergency buffer.
Use this savings formula
Usually 5%–20% of the property price.
Duty, legal work, inspections and settlement charges.
Funds left after settlement for ownership surprises.
Moneysmart recommends starting with the property price, adding buying costs and subtracting the amount you can borrow. That remaining balance is your savings target.
| Property price | 5% deposit | 10% deposit | 20% deposit |
|---|---|---|---|
| $500,000 | $25,000 | $50,000 | $100,000 |
| $600,000 | $30,000 | $60,000 | $120,000 |
| $750,000 | $37,500 | $75,000 | $150,000 |
| $900,000 | $45,000 | $90,000 | $180,000 |
Deposit figures only. They exclude stamp duty, purchase costs and any lender-specific requirements.
Can a first home buyer borrow 95% with a 5% deposit?
Potentially. Some lenders accept deposits as low as 5%, subject to credit policy, serviceability, property valuation and loan approval. From 1 October 2025, Housing Australia states that eligible first home buyers who have saved a 5% deposit can apply for the First Home Guarantee, with no scheme place limit or income cap, subject to scheme eligibility, participating-lender approval and location-based property price caps.
- 95% loan: a $600,000 purchase with a $30,000 deposit implies a base loan of $570,000 before any financed costs.
- Without a guarantee: borrowing above 80% LVR may involve lenders mortgage insurance (LMI), depending on the lender.
- With the First Home Guarantee: an eligible participating lender may lend up to 95% without the buyer paying LMI, because Housing Australia guarantees part of the loan.
- Approval is separate: the scheme does not override the lender’s income, expense, credit, property or affordability assessment.
Can the savings be in my account, my wife’s account or a joint account?
The account name is only one part of the assessment. What matters is who is applying, who owns the funds, whether the money is genuinely available for the purchase, and whether the source can be clearly evidenced.
Your individual account
Usually straightforward when you are an applicant and bank statements clearly show the balance and savings history.
Your spouse’s account
Often workable when your spouse is a co-borrower. If they are not borrowing, the lender may require a transfer, gift declaration or evidence of your right to use the funds.
A joint account
Often the clearest arrangement for joint applicants because both names and the shared savings history are visible.
If you are married or in a de facto relationship, your spouse’s prior property ownership can also affect first-home-buyer concessions—even if the spouse is not on the loan or title. State rules differ. Do not remove a spouse from the application simply to try to preserve a concession without first obtaining legal and lending advice.
What if family gives us the deposit?
A non-repayable family gift may be accepted by some lenders, normally with evidence of the transfer and a signed gift declaration. If the money must be repaid, it may be treated as a liability rather than a gift. A family guarantee is a different structure: the guarantor offers security rather than simply transferring cash, and should obtain independent legal advice.
What are “genuine savings”?
Genuine savings generally means money accumulated or held by the applicants over a period that meets the lender’s policy. The exact period and acceptable sources differ between lenders. Regular transfers into a savings account can help show that you can budget consistently.
A lender may distinguish between savings you built over time and money that arrived recently through a gift, asset sale, tax refund, bonus or personal loan. Recent money is not necessarily unusable, but it may require more evidence and may not satisfy a particular lender’s genuine-savings rule.
Stamp duty: the cost that changes your answer
Stamp duty—also called transfer duty or conveyance duty—is a state or territory tax charged when property ownership transfers. It can be one of the largest upfront costs. The amount depends on the jurisdiction, property value, property type, occupancy intention, residency status and available concessions.
A first home buyer may pay no duty, reduced duty or full duty. “First home buyer” does not automatically mean “stamp-duty exempt,” and a grant is not the same as a duty concession.
First home buyer duty concessions across Australia
The following is a high-level snapshot for contracts or transactions around 25 August 2026. Eligibility and dates matter, so confirm the result using the relevant revenue-office calculator before signing a contract.
| State or territory | High-level first-home duty position | Important limitation |
|---|---|---|
| NSW | Full exemption for eligible new or existing homes up to $800,000; concession above $800,000 and below $1 million. | Vacant-land thresholds differ; residence and spouse history rules apply. |
| Victoria | Eligible first home buyers pay no duty up to $600,000 and reduced duty from $600,001 to $750,000. | Applies to eligible new/established homes or land; conditions apply. |
| Queensland | First-home concession for eligible established homes under $800,000; eligible new homes and qualifying vacant land may receive full concession. | Temporary-resident eligibility changed from 1 August 2026; confirm current status. |
| South Australia | Eligible new homes, off-the-plan apartments and vacant land may receive full relief with no property cap for contracts from 6 June 2024. | Established homes are not eligible for this first-home duty relief. |
| Western Australia | From 7 May 2026, eligible homes up to $600,000 may be duty-free, with concessional duty up to $800,000; land thresholds are $450,000 and $550,000. | Location and transaction-date rules apply. |
| ACT | From 1 July 2026, eligible buyers under the Home Buyer Concession Scheme pay no conveyance duty on ACT homes or residential land. | Prior-property and 12-month residence requirements remain. |
| Tasmania | The temporary 100% duty exemption for eligible established homes ended for settlements after 30 June 2026. | Check for any newer measure and calculate standard duty before committing. |
| Northern Territory | A house-and-land-package exemption applies to certain eligible contracts through 30 June 2027. | This is not a blanket exemption for every first-home purchase. |
This summary is general and date-sensitive. Foreign purchaser surcharges and other charges may apply separately.
Monthly repayments at a 6.25% variable rate
The examples below assume a 5% deposit, a 95% principal-and-interest loan, monthly repayments over 30 years and an unchanged annual interest rate of 6.25%. They exclude fees, LMI, offset balances and any amount added to the loan.
| Property price | 5% deposit | Illustrative loan | Approx. monthly repayment |
|---|---|---|---|
| $500,000 | $25,000 | $475,000 | $2,925 |
| $600,000 | $30,000 | $570,000 | $3,510 |
| $750,000 | $37,500 | $712,500 | $4,387 |
| $900,000 | $45,000 | $855,000 | $5,264 |
Rounded estimates only. 6.25% is an illustrative variable rate, not a quote or prediction. Variable rates and repayments can change.
How much does a bigger deposit change the repayment?
For the same $600,000 property at the same illustrative 6.25% rate over 30 years, the approximate monthly repayment is $3,510 with 5% down, $3,325 with 10% down and $2,955 with 20% down. A larger deposit can reduce repayments and may avoid LMI, but waiting longer also has trade-offs.
Ways to build or reduce your required cash
- Set your property ceiling firstYour deposit goal is meaningless until it is linked to an affordable purchase price.
- Check duty before choosing a property typeA new home, established home and vacant land can receive different treatment in the same state.
- Test First Home Guarantee eligibilityA 5% pathway may reduce the deposit hurdle and avoid LMI for eligible borrowers and properties.
- Consider the First Home Super Saver SchemeEligible voluntary super contributions can be released up to scheme limits. The ATO states the annual contribution limit is $15,000 and the total limit is $50,000.
- Keep the savings trail cleanAvoid unexplained cash deposits, undisclosed loans and frequent transfers that make the source difficult to verify.
- Reduce unused credit limitsCredit-card limits and other debts can reduce borrowing power even when the balance is low.
- Keep a settlement bufferHome ownership begins with rates, insurance, repairs, moving costs and furnishing—not just the mortgage.
Calculate your possible buying position
Use the guided mortgage calculator to estimate borrowing power and organise your income, expenses, debts, dependants, deposit and buying plan. Results are indicative and do not confirm loan or scheme eligibility.
Use the mortgage calculatorFrequently asked questions
Is $30,000 enough to buy a $600,000 home?
It is exactly a 5% deposit, but it may not be enough to complete the purchase. Add any stamp duty, conveyancing, inspections, lender and settlement costs, insurance and a post-settlement buffer.
Can my deposit stay in my wife’s bank account?
It may be acceptable, particularly when both spouses are borrowers, but lender policy varies. If only one spouse applies, additional evidence, transfer of funds or a gift declaration may be requested.
Is a joint savings account better?
For joint applicants, it can make shared ownership and the savings history easier to evidence. It is not automatically required, and changing accounts immediately before applying does not replace the need to show the source of funds.
Does a 5% deposit guarantee a 95% loan?
No. The lender still assesses income, expenses, liabilities, credit history, property valuation and policy eligibility. Government scheme eligibility also does not guarantee credit approval.
Do all first home buyers avoid stamp duty?
No. Duty rules vary by state, property type, value, contract date, residency, prior ownership and residence requirements. Some buyers receive full relief, some a concession and others pay full duty.
Can a grant form part of my deposit?
It may contribute to the funds available at settlement, depending on the grant timing and lender policy. Do not assume the grant will satisfy genuine-savings requirements or be available for the initial contract deposit.
Is 6.25% the rate I will receive?
No. It is an example used for repayment modelling. Your actual rate depends on the lender, product, LVR, borrower profile and market conditions, and a variable rate can change.
Official sources and further reading
- Moneysmart — Save for a house deposit
- Moneysmart — Buying a house and upfront costs
- Housing Australia — First Home Guarantee changes and price caps
- ATO — First Home Super Saver Scheme
- Revenue NSW — First Home Buyers Assistance Scheme
- Victoria SRO — First home buyer duty exemption or concession
- Queensland Revenue Office — Home concessions
- RevenueSA — First home buyer stamp duty relief
- Government of WA — 2026–27 housing taxation package
- ACT Revenue Office — Home Buyer Concession Scheme
- Tasmania SRO — Current duty concessions and exemptions
- NT Treasury — Stamp duty
General information only: This article does not provide personal financial, tax, legal or credit advice. Deposit requirements, genuine-savings rules, interest rates, fees, guarantees, grants and duty concessions vary and can change. Repayment examples are mathematical illustrations, not quotes. Loan and scheme approval are not guaranteed. Confirm current rules with the relevant government body, your conveyancer or solicitor and your lender before committing to a property.